MGA Director Lincoln Wymer warns independent supermarkets cannot absorb rising costs much longer
Master Grocers Australia Independent Businesses Australia director Lincoln Wymer was featured in an ABC News article today warning that smaller supermarkets are facing mounting pressure to keep grocery prices stable as the cost of keeping shelves full continues to rise.
In the article titled “Iran war: Independent supermarkets under pressure as costs rise,” Lincoln outlined how independent retailers have been absorbing increased delivery fees from suppliers since fuel prices jumped, but warned this situation is unsustainable.
“The big one’s been the increase in the minimum delivery cost,” Lincoln said. “Before, they might have been $200. They’re now saying we’re not sending it unless it’s a $500 order now. That’s really hurting the small suppliers because sometimes we don’t need to spend that much money on their products.”
Lincoln, who is also the chief operating officer of the Reddrop Group operating supermarkets across Victoria and southern New South Wales, highlighted the dramatic increase in transport costs affecting the supply chain.
“I spoke to our main transport company … and he’s gone from about $20,000 a month to over $30,000 in fuel costs alone,” he said. “He nearly exclusively supplies our stores and so that $10,000 a month has to come out of our businesses.”
While recent government fuel excise cuts have helped delay price increases in the short term, Lincoln warned the situation cannot continue indefinitely.
“If this continues much longer, I just can’t see how a grocery store or supermarket can absorb these costs into their narrow margins,” he said.
For media enquiries, please contact:
Kath Markov, Marketing & Partnerships Manager
kath.markov@mgaiba.org.au
0452 660 506
About ABC News
ABC News is Australia’s most trusted news source, providing comprehensive coverage of national and international news, current affairs, and analysis. As part of the Australian Broadcasting Corporation, ABC News delivers independent, accurate journalism across television, radio, and digital platforms, serving millions of Australians daily.
